Government cannot justify tax exemption for civil and military officials: Shahid Khaqan Abbasi

Pakistan's former Prime Minister Shahid Khaqan Abbasi has criticised the tax exemption granted to civilian bureucrats and military personnel in the latest budget announced the the government.

Addressing a press conference in Islamabad on Monday, the former premier, flanked by fellow Awam Pakistan party member Miftah Ismail, criticised Pakistan's latest budget, labeling it as the worst in the country's history and lamenting it as the third consecutive disappointing budget under the current government.

"If you sell land or house, a tax of 2.5 to 4.5 percent has been imposed on it. But there is a clause kept in it which I don't think any government can justify it. Civil bureaucrats and military personnel whether serving or retired have been granted an exemption. I am absolutely in favour of giving exemption to the family members of martyrs who have houses. But a path has been opened that will spoil the whole matter. Tomorrow the people will ask if they can get an exemption then why can't I get it."

Abbasi condemned the budget's economic implications, highlighting that government expenditures now account for 25% of the GDP.

He expressed concern over the disproportionate taxation policies, asserting that such measures often lead to significant reductions in disposable income for the average citizen—a scenario more commonly witnessed in countries where the government shoulders the entire fiscal burden.

The former PM also raised questions about fiscal governance, pointing out discrepancies in tax collections from sectors like tobacco manufacturing.

Highlighting Pakistan's substantial financial outlay on interest payments, Abbasi criticized the lack of measures to combat diesel smuggling and the absence of economic benefits reaching the people of the Federally Administered Tribal Areas (FATA), despite their integral status within Pakistan.

Ismail and Abbasi, launched their new political party, Awaam Pakistan last month. 

The launch was largely expected after the duo parted ways with the Pakistan Muslim League-Nawaz (PML-N).Both were key figures in the PML-N.

The PDM government was formed in 2022, following the ousting of Imran Khan as prime minister. 

Ismail and Abbasi have both been vocal about their criticism of the current government's handling of the economy and have promised to bring about positive change if elected.